Seoul Stock Market Jumps Nearly 3% Boosted by Robust Tech Sector

The Seoul stock market, known as the Korea Composite Stock Price Index (KOSPI), witnessed an impressive surge almost reaching the 3 percent mark on Friday. The tech, automotive, and financial sectors were primary contributors to this rise, propelled by encouraging earnings reports from United States technology giants. In response, the Korean won experienced an appreciation against the U.S. dollar.

On that day, the KOSPI notably advanced by 72.85 points, which translates to an increase of 2.87 percent, settling at 2,615.31 points. Trading activities were notably brisk, with about 580 million shares changing hands, amounting to a monetary value of 14.1 trillion won (approximately $10.7 billion). The day concluded on a positive note with gainers significantly outnumbering losers at a ratio of 710 to 180.

Foreign investors and institutional players were instrumental in driving the index upwards, purchasing shares worth 1.89 trillion won and 642.4 billion won respectively. On the flip side, individual investors cashed in profits by offloading stocks valued at 2.5 trillion won.

The U.S. stock market's overnight performance also played a role in the upbeat sentiment, following robust earnings reports from major companies such as Apple, Amazon, and Meta Platforms. The S&P 500 climbed by 1.2 percent, while significant indices like the Dow Jones Industrial Average and Nasdaq composite gained 1 percent and 1.3 percent, respectively.

According to Daishin Securities analyst Lee Kyoung-min, the surge in the auto and finance sectors, which were previously considered undervalued, provided a substantial lift to the South Korean stock market.

In Seoul, major players saw significant gains. Samsung Electronics, the market bellwether, was up 2.17 percent at 75,200 won, while SK hynix, the second-largest chipmaker, increased by 1.66 percent to 134,900 won. Top automakers weren't left behind; Hyundai Motor surged a remarkable 9.13 percent to 227,000 won, and its affiliate Kia's share price soared by an impressive 12.42 percent to 119,500 won.

Internet firms also enjoyed the bullish market, with Naver's stock price leaping by 9.38 percent to 221,500 won following their announcement of record high annual sales. Meanwhile, Kakao, renowned for operating the country's premier mobile messaging service, saw its shares escalate by 6.83 percent to 56,300 won.

Other sectors, including chemical producers like LG Chem and steel industry giant Posco Holdings, experienced notable rallies with their shares climbing by 7.21 percent and 2.75 percent, respectively. The positivity extended to the bio and battery sectors, with leading battery manufacturer LG Energy Solution gaining 1.57 percent and Samsung Biologics advancing by 3.62 percent.

Financial shares also joined the advance, with significant increases for Shinhan Financial Group at 6.59 percent and Kakao Bank at 9.12 percent. The Korean won ended the trading session stronger, at 1,322.60 won against the dollar, moving up by 9.20 won from the prior close.

Seoul, Stocks, Technology